Tandem Company Manufactures Two Products (D and F) If the Number of Machine Hours Is Used to Assign

question 21

Multiple Choice

Tandem Company manufactures two products (D and F) . The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{cccc}\text { Product } & \text { Number of Setups} & \text { Machine Hours} & \text { Packing Orders }\\\hline\mathrm{D} & 10 & 500 & 75 \\\text { F } & 10 & 2,000 & 175 \\\text { Cost perpool } & \$ 11,000 & \$ 60,000 & \$ 18,750\end{array}$ If the number of machine hours is used to assign machine hour cost, determine the amount of machine hour cost to be assigned to Product D.

• A)$12,000
• B)$60,000
• C)$48,000
• D)$16,800

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